Claimants secure victory in breach of fiduciary duty case
By
Claimants win significant damages in a breach of fiduciary duty case involving hijacked business opportunities
Claimants secure victory in breach of fiduciary duty case
The High Court recently handed down a significant judgment in a case involving allegations of breach of fiduciary duty and contractual obligations. The claimants, represented by Mr. Clarke of Shakespeares Legal LLP, successfully argued that the defendants, led by Lea Mark Adams and John Jones, attempted to hijack their business operations.
The case began in February 2012 when the court granted a search order and injunctive relief against the defendants. Despite the defendants appearing briefly in April 2012, they largely abstained from participating in the proceedings, leading to a judgment being entered against them.
The claimants provided evidence of their losses, particularly focusing on two lucrative contracts that were lost due to the defendants' actions. These contracts involved supplying seating for the Saracens Rugby Club and the Austin Grand Prix in Texas.
Witnesses, including Mr. Heywood and Mr. Hoane, testified about the contracts, while Mr. Black, a Finance Director, provided detailed financial evidence. The court found this evidence robust and compelling, leading to a judgment in favour of the claimants.
The court awarded the claimants damages totalling £4,334,435, reflecting the loss of profits from the two contracts. The court also commended the claimants for their efficient case management and adherence to their costs budget.
Additionally, the court ordered the defendants to pay indemnity costs, citing their conduct in the litigation process as unacceptable. The claimants' costs were assessed at £351,267.35, which the court found reasonable given the circumstances.
This case highlights the importance of fiduciary duties and the consequences of breaching such obligations. The judgment serves as a warning to those who might consider similar actions in business contexts.
Learn More
For more information on fiduciary duties and related legal principles, see BeCivil's guide to Shareholder Law.
Read the Guide